SBI Cuts Fixed Deposit Rates On Select Maturities

New Delhi: Flush with cash due to the demonetisation exercise of the government, State Bank of India (SBI) on Wednesday slashed fixed deposit rates on select maturities by up to 0.15 per cent.

The term deposit of one year to 455 days has been reduced by 0.15 per cent to 6.90 per cent from 7.05 per cent effective Thursday, SBI said in a statement.

Besides, the one of 456 days to less than two years also gets cheaper to 6.95 per cent from 7.10 per cent. 

The term deposit between two years and three years will now attract an interest rate of 6.85 per cent from seven per cent.

The proposed rates of interest will be made applicable to fresh deposits and renewals of maturing deposits.

However, NRO deposits of staff are not eligible for additional one per cent interest otherwise applicable to staff domestic retail deposits. These rates of interest will also be made applicable to domestic term deposits from cooperative banks, it said.

Meanwhile, SBI collected Rs 1,14,139 crore in deposits in last seven days after the government announced to scrap Rs 500 and Rs 1,000 notes.

The government announced its decision to abolish Rs 500 and Rs 1,000 notes on November 8. Banks were opened for transactions from November 10 but was closed on November 14 on account of 'Guru Nanak Jayanti' in major parts of the country.